Smart meter plans unveiled
December 18, 2009 at 4:20 pm
The government has announced its plans for the rolling out of smart meters across the country. The main aim of the plans is that all houses across the country will be fitted with a smart meter by 2020 in a bid to help save more energy.
The plan has been widely praised by power companies and consumers alike. Each meter will come with a separate visual display which can be fitted anywhere in the house. This will show residents exactly how much energy they are using at any given time. It is thought that this will help people to monitor their energy use more carefully, which will have the combined effect of reducing energy bills and saving energy.
The present estimate is that each household will be able to save £28 per year on its fuel bills. However, other estimates suggest that the change in behaviour that the meters are likely to create could help people to save in the region of £100 a year.
The job of installing the new meters in homes across the country will fall to the power companies. It is expected to cost £8 billion to install the 47 million meters into 26 million properties. However, it will be customers who foot the bill.
The installation will cost each household about £340, the funding for which will come from higher bills and fees from the power companies. Although only some of this is likely to be felt by consumers, some have suggested that it should be entirely funded by the power companies as they are set to save millions of pounds every year from the new meters as they will no longer have to employ meter readers.
Energy suppliers warned: do not overcharge customers
December 18, 2009 at 4:19 am
A recent report by Ofgem, regulator of the energy industry, reveals that with wholesale gas costs down due to the recession, energy suppliers’ profits are the highest they have been for five years or more. As customers’ bills have not fallen as a result, suppliers are being warned that they could face fines if the trend continues in the New Year.
This is worrying news considering the many UK homeowners who are struggling to pay their heating bills. It is estimated that millions of families are being forced to spend over 10% of their earnings on heating.
This summer, wholesale prices dropped dramatically, and are now the lowest they have been for three years. On average, however, energy providers’ prices have only fallen by 6%.
Energy UK, which speaks on behalf of the major suppliers of gas and electricity, claimed that only half of a customer’s bill is related to the cost of the actual energy. The process of getting the energy to the home should also be taken into account. It admitted that companies have made “some modest profit” this year, but only after four years of not making any, or making a loss.
A number of charities are angry at the findings. Chairman of Consumer Credit Counselling Service, Malcolm Hurlston, called on the large organisations to act more fairly, deeming their excuses for not reducing costs inadequate.
Investigations will continue early next year, as Ofgem warns it “will not shy away from proposing radical reform to protect the interests of consumers”.
Meanwhile, Ofgem advises consumers that by switching to a cheaper gas supplier, annual savings of around £200 can be made. A bit of research can clearly pay off.
Explore the pros and cons of the UK’s gas companies in our Industry Info section.
British Gas' new technology will cut estimated bills
December 11, 2009 at 11:32 am
British Gas have introduced a new approach to energy billing which will eliminate estimated quarterly bills.
A recent study carried out by the company revealed a vast body of its customers, to the tune of sixteen million, had become frustrated by the estimated billing process. The new system will herald accurate billing using electricity monitors so customers will know exactly how much energy they’re consuming and at what cost.
Energysmart will allow customers to register monthly meter readings online or by text, using readouts from the device, provided free of charge on signing up to the service. The self-installed monitor will communicate readings from the existing meter, wirelessly, to a display plugged into a home socket.
British Gas claim the monitors will help customers save £110 on their annual energy bill by informing customers how much they’re consuming daily, weekly or monthly. The device will allow for comparison with earlier bills, enable the setting of reduced energy-use targets, and will also give a reading of carbon emission levels.
By directly observing how energy is used and to what degree, customers will have greater control over their energy outgoings and the ability to prepare for or influence their monthly bill. Further to the predicted household savings, the company will reward consistent monthly submission of meter readings with a £40 loyalty bonus after the first year.
Some have criticised British Gas’ decision to exclude the lower tariff. Customers currently signed up to their Websaver 4 tariff on either gas, electricity or dual fuel are not offered the Energysmart service. All other tariffs have a sign up option.
The government has, this week, given the thumbs-up on the commencement of a smart meter programme, indicating its intent towards a future of greater energy efficiency and responsible living. All energy suppliers have been issued a 2020 target to ensure every UK home is fitted with a new energy monitor.
